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Purchase of goods from other state unregistered dealer

Registration 1480 views 4 replies

Hi
I run an ecommerce business and sell handicrafts/textiles/jewelry through our website. I go to various states across India and purchase goods that I resell through my website and through other online marketplaces. Now I often need to purchase stuff from small vendors or artists who are unregistered and they give us cash receipt. I then transport the goods purchased into my own state either by getting them with me or through some courier company.
Am I doing anything wrong by buying from unregistered dealers of other states? I mean how else would I be able to buy any handicrafts from small artists across India? Could anyone please guide me regarding this?

Thanks
Madhuri

Replies (4)
no ur not doing anything worng!!! & as a ecommerce operator u should aware about tcs provision u/ 52 w.e.f. 01/10/2018
yes you can buy it

but
Purchasing from Unregistered Suppliers

Purchases upto Rs. 5,000 per day from unregistered suppliers will not attract GST.  In other words, there is a reverse charge on buying from unregistered dealers.

and show in GST 3b

5. Values of exempt, nil-rated and non-GST inward supplies

for more information read
https://cleartax.in/s/reverse-charge-buying-from-unregistered-dealers
Hi Thanks for your advices. I am actually confused about going to another state (different from my home state) and buying from an unregistered dealer. The cleartax link (https://cleartax.in/s/reverse-charge-buying-from-unregistered-dealers) also says that unregistered dealers are not allowed to do inter state sales. But then when I visit the dealer i his state and buy from there, will it be a mistake? I mean will the GST department not raise a question eventually as to why the unregistered dealer has sold to an out of state dealer? Saurabh - we are not an ecommerce operator - tcs applies for operators like Amazon who let other sellers sell on their platform. A dealer who sells her own goods on her own website is not covered under the TCS provision. Thanks Madhuri
good clarification and information


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